Smith Company has an investment opportunity to purchase a new machine costing 575,000 that is expected to yield the following net cash flows over the next five years Year 1: $15,000 Year 2: $30,000 Year 3: $45,000 Year 4: 530,000 Year 5: $15,000 In year 5, Smith Company can sell the machine at the end of the project and collect a salvage value on the machine 55,000 Given this information which statement would be most accurate regargind Smith's evaluation of this capital project? Smith should reject this project because the profitability index of the project is less than 1.5. Smith should reject this project because the profitability index of the project and the net present value lead to differing conclusions about the project's expected future cash flows. Smith should accept this project because the sum of the present value of future cash flows exceeds the intial investment by 530,120. (rounded) Smith should accept this project because the sum of the present value of future cash flows is $105,120, Smith Company has an investment opportunity to purchase a new machine costing 575,000 that is expected to yield the following net cash flows over the next five years Year 1: $15,000 Year 2: $30,000 Year 3: $45,000 Year 4: 530,000 Year 5: $15,000 In year 5, Smith Company can sell the machine at the end of the project and collect a salvage value on the machine 55,000 Given this information which statement would be most accurate regargind Smith's evaluation of this capital project? Smith should reject this project because the profitability index of the project is less than 1.5. Smith should reject this project because the profitability index of the project and the net present value lead to differing conclusions about the project's expected future cash flows. Smith should accept this project because the sum of the present value of future cash flows exceeds the intial investment by 530,120. (rounded) Smith should accept this project because the sum of the present value of future cash flows is $105,120